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Overall, the major pairs continued to advance during the overnight session, extending the gains seen over the last few sessions. Most of the gains came during the European session, as has been the case lately. The major currencies advanced and broke above important swing points, even though the S&P futures provided only modest support tonight. The two commodity pairs, cad and aussie, saw additional momentum during the overnight session as crude oil holds above the $60 dollar level.
The Euro (Eur/Usd) managed to find relatively strong momentum during the overnight session, despite the very weak trading session experienced on Monday. The pair is now approaching the 1.3650 area, which acted as a strong swing point in the past.
The Pound (Gbp/Usd) extended the strong gains seen in the previous day of trading, on Monday. The pound surged 140 pips tonight, totaling almost 300 pips gained in the last 24 hours of trading. For now, the pound is trading at the highest valuation seen since December 2008.
The Aussie (Aud/Usd) was helped by the London open to advance and break above the high reached on Monday. At the same time, the aussie broke above the 0.7700 resistance area, reaching the highest valuation since early October 2008. The aussie continues to trade above all of the daily simple moving averages.
The Cad (Usd/Cad) moved side-ways during the first part of the overnight session, trading near the low reached on Monday. However, the pair plunged during the European session, as crude oil broke and held above the $60 benchmark level. Additionally, the cad broke below the support trend-line of the last few days of trading.
The Swissy (Usd/Chf) tested the 1.1160 resistance area during the Asian session, but the London open sent the swissy much lower. Over the next few days, the swissy might resume its downward trend as, on Monday, the swissy bounced off the resistance trend-line that connects the 04/22 and the 05/07 highs.
The Yen (Usd/Yen) struggled to break above the resistance trend-line that connects the 03/19 and the 04/28 lows during the overnight session. Yesterday, the yen formed a bullish engulfing pattern, which may provide some additional strength over the coming period.
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